Comparative Analysis of Investment Incentives in Ethiopia and Other East African Countries

Abstract

Ethiopia introduced various Economic Reform Programs including investment incentive reforms since 1992. The main reason Ethiopia introducing various investment incentive reforms including tax incentive is to create enabling environment for both domestic and foreign investors, and thereby create employment opportunity,  boost economic growth and broaden the tax base. However those government assumption and stated objectives were not achieved since the role of private investment in the overall development of the country is very low and it is also lag behind some East African countries. If this so, why the government of Ethiopia  introduce and implement various incentive packages requires investigation on how the tax incentives were design and implemented  and make comparative analysis with relatively better performing East African countries with nearly similar level of development. Owing to this,  this article tries to address those issues by employing both primary and secondary data.

Keywords: Investment incentives, East African countries

DOI: 10.7176/RJFA/12-7-02

Publication date: April 30^th 2021